Local Government Corporations

Local governments may form, or acquire shares in, a corporation with the approval of the Inspector of Municipalities.

A local government may incorporate a for-profit corporation (under the Business Corporations Act) with the approval of the Inspector of Municipalities. The role of the Inspector is to ensure that the incorporation of a local government corporation is in the best interests of the electors and does not expose the local government to undue risk.

  • Local governments corporations can provide a commercial service (like a community forest company) while limiting the legal liability of the local government
  • In some cases, a corporate board of directors may be able to bring expertise not held by local government staff or elected officials, for example, an economic development corporation
  • In some cases, a corporation can allow for shared control with other local governments and entities for broader benefit, for example an emergency 9-1-1 service

After formation of the corporation has been approved by the Inspector, it may be registered with the Corporate Registrar.